Biodiesel Project 24 June 2009

Why invest in biodiesel self-production? Biodiesel in Brazil is produced overwhelmingly using soybean There are strong indications that the market price of biodiesel will remain high, in line with the soybean price Sustainability: Sustainability: sustainable operations using biofuel Source: BiodieselBR – December 2008 Guaranteed supply: Guaranteed supply: minimize vulnerability in terms of fuel supply and price on the market

Features: Tests under way using natural gas + diesel blends in locomotives Prototype GE and EMD locomotives to be tested in 2009 Cryogenic tanks built to store gas for locomotives Benefits: Using natural gas to power trains on the Vitória-Minas and Carajás railways will cut CO 2 equivalent emissions by 73,000 tons per year. This corresponds to emissions from 32,000 cars. Flex-fuel train (being tested)

Biodiesel Project Key figures: Vale’s investment: US$305 million Production of 160,000 tons of biodiesel to supply Carajás Railway and heavy- duty machines and equipment in Carajás mines 60,000 hectares to be planted, in consortium with Biopalma, within total area of around 130,000 hectares Project covers five municipalities: Moju, Tomé-Açú, Acará, Concórdia and Abaetetuba Biodiesel production to begin in 2014

Benefits Social – Social – 6,000 direct jobs created “Small Producer Project” to benefit 2,000 families of small rural producers in terms of: –Technical assistance –Guaranteed purchase of crop –Financing from Banco da Amazônia –Seeds supplied by Embrapa Reduction in rural exodus, promoting social inclusion and favoring sustainable economic development

Benefits Environmental There will be no deforestation for planting Of the total of 130,000 hectares, 70,000 will be allotted for native habitat, to be restored and protected by the consortium Using biodiesel will cut CO 2 equivalent atmospheric emissions by 12 million tons over the course of the project. This corresponds to emissions from more than 200,000 cars over the period Self-generation of electricity using biomass

B20 used in EFVM and EFC trains Vale’s Biodiesel Production Project developed B20 used in EFVM and EFC trains Vale’s Biodiesel Production Project developed Vale Biopalma Consortium established to produce palm oil (main biodiesel input) 5,000 hectares planted Vale Biopalma Consortium established to produce palm oil (main biodiesel input) 5,000 hectares planted 12,500 hectares planted Fourth extraction plant installed Biodiesel production begins Fourth extraction plant installed Biodiesel production begins First oil extraction plant installed 12,500 hectares planted Harvest of first crop; oil production begins First oil extraction plant installed 12,500 hectares planted Harvest of first crop; oil production begins Vale’s Biodiesel Project continues in development Second oil extraction plant installed 15,000 hectares planted Second oil extraction plant installed 15,000 hectares planted Third extraction plant installed 15,000 hectares planted Third extraction plant installed 15,000 hectares planted Biodiesel at Vale – timeline

41%59% Partner with experience in palm oil production Property already acquired by Biopalma in strategic locations, minimizing risks Guaranteed continuity of project in partnership with a global company with a strong local presence and knowledge in Pará Business objectives of consortium partners do not conflict Agricultural crop Output of 500,000 tons of palm oil per year Oil extraction plants Biodiesel production Biodiesel blend distribution Output of 160,000 tons of biodiesel per year Consortium Vale Vale Biopalma Consortium

Vale’s consumption in Brazil and in North System* North System: Carajás mines, Carajás Railway, Ponta da Madeira Port Terminal, and São Luís Pelletization Plant * Consumption will tend to grow over next few years